Polar Power, Inc. 8-K

What Happened
Polar Power, Inc. announced on May 13, 2026 that it entered into a Revolving Loan Agreement with Stone Brothers Capital providing a revolving credit facility up to $2,500,000. Each loan under the facility bears interest at 12% per annum and matures one year after closing. The company may use loan proceeds for general corporate purposes, including to finance expenses of a Qualified Public Equity Offering (up to $6,000,000 in proceeds as defined in the agreement). As a closing condition, two existing directors must resign and three individuals designated by the lender are to be appointed to the board. On May 14, 2026 Polar Power reported that independent directors Keith Albrecht and Katherine Koster resigned effective May 19, 2026.

Key Details

• Revolving credit commitment up to $2,500,000 (entered May 13, 2026).
• Interest rate: 12% per annum on each loan.
• Maturity: one year from the closing date of the Loan Agreement.
• Permitted use: general corporate purposes, including financing the expense of a Qualified Public Equity Offering (for proceeds up to $6,000,000).
• Governance condition: two directors resigned and the lender may have the right to have three designees appointed to the board.

Why It Matters
The loan creates a new, material financial obligation for Polar Power and provides near-term liquidity with a relatively high interest cost (12%). The lender-imposed board changes are a governance development investors should note, since replacement of independent directors with lender designees could affect corporate decision-making. The agreement also ties to a potential public equity transaction (expenses for a Qualified Public Equity Offering), which could influence future capital structure or dilution. Investors should watch for additional filings with details about the lender-appointed directors, any draws on the facility, and any related equity offering.